Step 2. Assess Fundraising Capacity

Once you have established your
organization's overall priorities, the next step is to assess your organization's
fundraising capacity.

We define fundraising capacity here as an organization's ability to raise funds in
order to perform its overall priority activities and effectively sustain itself
over the long term. Your organization's fundraising capacity will affect which
funding options you pursue and what activities are feasible for you. Determining
your organization's fundraising capacity now will mean that you can choose the
most effective funding options when you develop your plan.

On the next three pages, we show you how to assess capacity, first through discussion
questions and then through a formal assessment called "Strengths, Weaknesses,
Opportunities, and Threats" analysis.

Note: A critical piece of this assessment (and one that is often not discussed) is
determining if your organization has the capacity to handle the funds once they
are received. In other words, if all fundraising goals
are achieved tomorrow, will your organization have the resources in place
to be able to invest the funds properly to get maximum returns? This discussion
is a first step in moving from a simple fundraising plan to having a comprehensive
finance plan (more on this in Step 6). Well-managed money gives people more confidence
in your organization and provides a sense of accountability.

"Enhancing your self-awareness helps you to be more honest, sincere and congruent.
It puts you in touch with your expectations. It increases your awareness
of times when you may feel disappointed and impatient. It helps you focus
on your goals - outcomes and experiences - that will be rewarding to
you."
-Robert Myrick and Tom Erney, authors of 'Youth helping Youth:
a Handbook for Training Peer Facilitators'5